DWTR Fund Description

The PowerShares DWA Tactical Sector Rotation Portfolio holds four momentum-based US sector ETFs with the greatest relative price momentum. The fund may hold up to 100% cash when cash has high relative momentum.

DWTR Factset Analytics Insight

PowerShares’ DWTR follows a sector rotation strategy from Dorsey Wright, the "smart beta" indexer behind First Trust's 2014 blockbuster fund FV. DWTR holds just four ETFs, chosen from the issuer's momentum-based US sector suite (also using Dorsey Wright indexes). The four funds are chosen for their strong relative momentum, essentially doubling down on the momentum strategy. The fund can also move up to 100% into T-bills, which replace any sector with lower relative momentum. DWTR isn't without drawbacks: It charges a steep fee and will likely see high turnover that could hurt both tracking and tax efficiency. And as a new fund, its performance record and liquidity are still being established. Still, DWTR could be highly appealing to those who believe its methodology will beat the market and are willing to take lots of active risk along the way. Trade with care.

The data and information contained herein is not intended to be investment or tax advice. A reference to a particular investment or security, a credit rating, or any observation concerning a security or investment provided in the ETF.com Service is not a recommendation to buy, sell, or hold such investment or security or to make any other investment decisions. You should not use such information for purposes of any actual transaction without consulting an investment or tax professional.

ETF.com DOES NOT TAKE RESPONSIBILITY FOR YOUR INVESTMENT OR OTHER ACTIONS NOR SHALL ETF.com HAVE ANY LIABILITY, CONTINGENT OR OTHERWISE, FOR THE ACCURACY, COMPLETENESS, TIMELINESS, OR CORRECT SEQUENCING OF ANY INFORMATION PROVIDED BY ETF.com OR FOR ANY DECISION MADE OR ACTION TAKEN BY YOU IN RELIANCE UPON SUCH INFORMATION OR ETF.com.

[ETF.com DOES NOT PROVIDE ANY RESEARCH OPINIONS.] ETF.com MAKES NO REPRESENTATIONS ABOUT THE SUITABILITY OF THE INFORMATION, PRODUCTS OR SERVICES CONTAINED HEREIN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.